$1.7B Refinancing Secured by 280 Park Avenue Owners

An agreement to lower the debt burden in addition to an existing tenant agreeing to double its footprint helped open the door to the $1.075 billion refinancing of 280 Park Avenue. The lenders providing the new mortgage were not disclosed, but the “loan matures in 2026, with a potential two-year extension.” As part of the deal, the building’s owners, SL Green Realty and Vornado Realty Trust paid off a “$125 million mezzanine loan for just $62.5 million” to lower the debt burden. Preceding the refinancing, PJT Partners renewed its existing 140,000-square-foot space in December, and according to reports at the time, simultaneously converted its 80,000-square-foot sublease to a 130,000-square-foot direct lease to bring the company’s total footprint to roughly 270,000 square feet, which helped relieve some of the vacancy pressure due to several large tenants that moved out of the building in the past year.”

Source:    https://www.crainsnewyork.com/real-estate/sl-green-vornado-refinance-280-park-aves-mortgage-pay-down-debt